Economic growth slows down

23/12/2008 15:00

The Dutch economy grew by 1.8 percent in the third quarter of 2008, compared to the same period one year previously. The third quarter had one extra working day compared to the third quarter of 2007. Economic growth was reduced by almost half compared to the first six months of 2008.

Compared to the preceding quarter, the Dutch economy did not grow at all. After correction for calendar and seasonal effects, the volume of the gross domestic product (GDP) virtually equalled the volume in the second quarter of 2008. Therefore, for the second time in a row, there was no quarter-on-quarter-growth.

Exports of goods and services were 3.7 percent higher than in the third quarter of 2007. Export growth slackened somewhat compared to preceding quarters. Imports of goods and services grew by 4.4 percent. At 5.5 percent, fixed capital formation growth remained high.

Households spent 1.0 percent more on goods and services. This was the lowest volume growth in three years. Spending on food, petrol, hotels and restaurants and on transport services decreased. The increase in spending on services slowed down. The volume of government consumption was 1.4 percent up on the third quarter of 2007.

Production growth of both goods and services was lower than in the preceding quarters. Production growth in the manufacturing industry was modest. In the sector hotels and restaurants, production growth was lower for the second quarter in a row. Production of natural gas and production in construction grew substantially.